UGMA & UTMA Custodial Accounts for Minors

For tax and other reasons, parents, grandparents and others sometimes want to transfer ownership of cash and other financial assets to children. The Uniform Transfers to Minors Act (UTMA) provides simple, inexpensive way to do that.

Our guidance on custodial accounts for minors appears on the following pages:

Custodial Accounts 101
Read this page to get a general background on what custodial accounts under UTMA and UGMA are all about.

Problems with Custodial Accounts
Custodial accounts aren’t always the best choice. They’re especially risky when dealing with very large amounts of money. Consider the points on this page before setting up an UGMA or UTMA account.